-- Long-term net-leased asset, strategic to Polaris' European operations
LONDON, Dec. 17, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust (REIT) specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net-lease properties, announced today that it has acquired a newly-constructed, approximately 362,000 square-foot, light-industrial and distribution center in Opole, Poland for €23.8 million leased to Polaris Industries (Polaris, NYSE: PII).
- Market leader with strong credit: Founded in 1955, Polaris designs, manufactures and markets recreational vehicles. It is the largest manufacturer of snowmobiles and the second largest maker of all-terrain vehicles in the world. A publicly traded company with an equity market capitalization of nearly €8 billion and a conservative balance sheet, Polaris has generated strong revenue and earnings growth in recent years.
- Critical facility on a long-term net lease with growth: The facility will serve as Polaris' primary European assembly and distribution center. Polaris has invested significantly in the fit-out of the facility, which Polaris expects will meaningfully lower its manufacturing and transportation costs. The net lease will be for an initial 15-year term and include CPI-based rent growth.
- Newly-built, strategically-located facility: Completed in February 2014, the new build-to-suit facility is located close to Poland's national highway in Opole, selected for its proximity to German population centers, the snow-covered regions of Southern Germany and Austria, and the large agricultural areas of Eastern Europe.
Jeffrey Lefleur, Managing Director of W. P. Carey, said: "This investment for W. P. Carey's owned real estate portfolio follows recent acquisitions by our Managed REITs in Poland — a country where we have been able to source high-quality assets with attractive yields. The facility is critical to Polaris' European operations and will support a well-established and growing business line on a long-term net lease."
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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Lefleur are examples of forward looking statements. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to its filings with the Securities and Exchange Commission.
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SOURCE W. P. Carey Inc.